The Milk Pail Market in Mountain View

BIG CHEESE: Brian shows off one of the Milk Pail's popular cheese wheels. Photograph by Alex Stover

The conventional wisdom is that in this current economic climate of harsh, bottom-line realities, the independent operator can’t compete against a deep-pocketed store with a national distribution system, economies of scale and volume. We live in a big-box world, and the little guy doesn’t stand much of a chance.

Located right across the street from Safeway, the 38-year-old market has carved out a deep niche—one filled with rarefied cheese, eclectically flavored ravioli and great deals on produce.

Owner Steve Rasmussen bought what was a bankrupt milk-processing facility in 1974 and renamed it the Milk Pail Market. The store was originally a drive-through milk shop that pasteurized its own milk and sold it in glass bottles.

As more grocery stores began to open in the area, Rasmussen figured he had to stay ahead of the competition, and so the Milk Pail became “a little alternative food business sort of thing” that sold food in bulk to value-conscious shoppers and those looking for out-of-the-ordinary ingredients way before Whole Foods Market started doing the same thing.

In time, Rasmussen added produce, vast quantities of which are now piled up around the edges of the open-air store.

In spite of the prepackaged sameness that defines the retail world today, Rasmussen has stayed in business by going the opposite route and offering specialty items one is not likely to find elsewhere and deals on produce by buying directly from producers.

Because the market caters to an international clientele, the produce goes way beyond iceberg lettuce and Red Delicious apples. I spotted a green cauliflower for 39 cents a pound and beautiful-looking Indian eggplant the size of cue balls.

So when Trader Joe’s opened nearby a dozen years ago, it didn’t hurt Rasmussen’s business. It helped. Trader Joe’s shoppers came from near and far, and many also made their way to Rasmussen’s store on the corner of California Avenue and San Antonio Road. Same thing when Whole Foods opened on El Camino Real. Shoppers looking for the organic and specialty products at Whole Foods ended up at the Milk Pail, too.

“I think the atmosphere of the business is a very engaging for a certain part of the population,” Rasmussen says. “It’s very experiential.”

Rasmussen calls that “certain part” of the population “thrill-seekers” who are looking for something else in their shopping cart than the latest product from Kraft or Nestle.

Cheese has been a big part of the Milk Pail’s success, too. When he first opened, Ramussen began selling sharp cheddar cheese from Wisconsin in 10-pound blocks, and he sold a lot of it. Then he had the bright idea of selling that cheese in smaller pieces. There were no digital scales or wrapping machines then, so he bought a baby scale, several boxes of Saran wrap and rubber bands, and hand wrote the labels.

Now, he sells more than 300 kinds of foreign and domestic cheese. And because of his contacts in the dairy world (his family used to own an East Bay dairy), he was able to get his hands on some really good cheese.

A walk through the store offers a tour of the world via cheese. I found one of my favorite cheeses, a smoky sheep-milk cheese from Spain called idiazabal, for just $9.29 a pound. I also spotted the first Filipino cheese I’ve ever seen, a semisoft cow’s-milk cheese called kesong puti.
Rasmussen is something of a cheese evangelist and hosts cheese-tasting and cheese-making events.

“I really want to get them excited about what’s possible,” he says.

He was even invited to do a cheese class at nearby Google when the Milk Pail sold more “Google Offers” coupons in a shorter period of time than any other business.

If you like cheese, seek out the store’s own label of fromage blanc. It comes from a herd of cows Rasmussen owns in Northern California. The cheese is the base for their line of ravioli, too. The store creates unlikely flavors like Thai curry cheddar and horseradish harvarti.

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10 Comments

You captured the essence and personality of that wonderful little market! Thanks for the history and also letting people know that there are independent shops and stores everywhere who do wonderfully BECAUSE they found, and cater to, their niche customers! Now if only we could get that cheese to be “no calorie” cheese….darn!

It is a great place for great prices on produce. If you can stand being with the totally obnoxious and weird customers who cut in line, or will see 3/4 of an inch space between you and the shelf you’re browsing and force themselves in front of you.

Love the Milk Pail, reminds me of my childhood growing up in Europe and taking daily trips with my grandma to the open air market. Thank You so much for all the goodies that You provide for your shoppers.

Great article and great store! I love The Milk Pail, not only for those exotic and delicious fruits and veggies but for their amazing soy cheeses! It’s been a fun place to take out of town guests who say it reminds them of a Parisan market. Keep up the great work! I’d love to see more vegan foods too! =)

My son and I moved to Miller Ave across the Street from Sears in July 1979. My son was 23 months old. I was going thru very hard times due to having to move a lot because of people and their stereos.
My son and I walked with his stroller to The Milk Pail and Mostly looked at the great food items because I had very little money. Steve always talked to his customers. 20+ years later I was there alone (my son had just left the nest)and he said “I know you”! You had a little boy and came here all the time. I was stunned. (of Course I was very good looking; but he remembered my little toddler)!
The transformation and the fact that he is still there is to say the least very impressive. Good Job Steve!
Linda S.
9-7-12

I worked at The Milk Pail for a couple of summers, and even with all the great specialty foods and cheeses, what I loved most is how kind the people who work there are. Steve has created a family-like atmosphere for employees, which I know translates to a better shopping experience for the customers.